XRP: Geopolitical tensions drive a Ripple sell-off – Will XRP fall below $2?

XRP has fallen below the $2 level over the weekend after the U.S. officially entered the conflict between Iran and Israel. The 24-hour trading volume of this token surged by 41%, possibly due to this bearish breakout that triggered a large influx of buying positions. XRP has consolidated for a while after the token surged near its all-time high in January. Some legal victories against the Securities and Exchange Commission (SEC) and a change in the leadership of the regulatory agency to a cryptocurrency-friendly figure – Paul Atkins – support the prediction of an increase in XRP's price.

Meanwhile, the launch of Ripple USD (RLUSD) and the rapid expansion of market capitalization, along with the latest announcement about supporting USDC in the Ripple blockchain, have also reinforced the outlook for XRP. However, the market has undervalued and overlooked most of these bullish catalysts for the majority of 2025. XRP Price Prediction: The likelihood of testing the support level of $1.9 seems very high. According to data from CoinGlass, cryptocurrency liquidation activity in the past 24 hours has surged to over 620 million dollars. This is a result of the latest developments in the Middle East. XRP fell to $1.91 and bounced off that level and now it seems to be heading towards testing the previous support level of $2.08 from below to confirm the bearish outlook. If the price rejects the move above that area, this could lead to a significant fall in the short term as it means that XRP has broken out of the consolidation process in a bearish direction. Meanwhile, the long-term price trend has shifted to bearish as this token is currently trading below the 200-day exponential moving average (EMA). The Trading Volume at $1.91 is quite high and above the average. This confirms the relevance of this price range and the existence of significant buying interest at that level. Therefore, this, along with the resistance level of 2.08 dollars, are the key areas to watch in the coming hours. Any developments in the Middle East that could indicate an escalation in the conflict – such as the involvement of more countries – could cause XRP to fall further as the price of the US dollar is likely to rise. Meanwhile, Bitcoin (BTC) remains resilient against this downturn as investors see it as a safe haven during times of geopolitical crisis.